Kaveri Seed Company Limited's (NSE:KSCL) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Kaveri Seed to hold its Annual General Meeting on 23rd of September
• Total pay for CEO Gundavaram Venkata Rao includes ₹68.0m salary
• Total compensation is 123% above industry average
• Kaveri Seed's EPS grew by 12% over the past three years while total shareholder return over the past three years was 163%

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Performance at Kaveri Seed Company Limited (NSE:KSCL) has been reasonably good and CEO Gundavaram Venkata Rao has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 23rd of September. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Kaveri Seed

Comparing Kaveri Seed Company Limited's CEO Compensation With The Industry

Our data indicates that Kaveri Seed Company Limited has a market capitalization of ₹61b, and total annual CEO compensation was reported as ₹73m for the year to March 2025. That's a notable increase of 20% on last year. Notably, the salary which is ₹68.0m, represents most of the total compensation being paid.

On examining similar-sized companies in the Indian Food industry with market capitalizations between ₹35b and ₹141b, we discovered that the median CEO total compensation of that group was ₹33m. This suggests that Gundavaram Venkata Rao is paid more than the median for the industry. What's more, Gundavaram Venkata Rao holds ₹30b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Kaveri Seed is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Kaveri Seed Company Limited's Growth

Kaveri Seed Company Limited's earnings per share (EPS) grew 12% per year over the last three years. It achieved revenue growth of 3.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Kaveri Seed Company Limited Been A Good Investment?

Most shareholders would probably be pleased with Kaveri Seed Company Limited for providing a total return of 163% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Kaveri Seed that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.